S&P may downgrade Walgreen on proposed Longs bid

SAN FRANCISCO (MarketWatch) -- Standard & Poor's said Monday it may downgrade the ratings of Walgreen Co.
wag
following the drug store chain's proposed $3 billion bid for Longs Drug Stores Corp.
LDG, -22.86%
S&P has an A+ corporate credit rating and an A-1 short term rating on Walgreen. "The CreditWatch placement reflects Walgreen's more aggressive financial policy, the expected increase in debt leverage to fund the acquisition, and its limited track record in integrating large acquisitions," said Ana Lai, an S&P credit analyst, in a statement.

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